International Surface Air Lift Service

POSTAL SERVICE

39 CFR Part 20

International Surface Air Lift Service

AGENCY: Postal Service.

ACTION: Final Rule.

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SUMMARY: The Postal Service is adopting amendments to International

Mail Manual, section 246, to allow customers to use International

Surface Air Lift (ISAL) service to mail small packets, a type of

international mail that can be used to send small quantities of

merchandise. By allowing small packets to be sent in ISAL shipments,

the Postal Service is responding to customer demand to provide a way of

sending these items that is more economical than regular airmail

service and faster than surface mail.

DATES: Effective on May 13, 1994.

FOR FURTHER INFORMATION CONTACT:

Walter J. Grandjean, (202) 268-5180.

SUPPLEMENTARY INFORMATION: On October 27, 1993, the Postal Service

published in the Federal Register (58 FR 57742) an interim rule and

request for comment on proposed amendment to section 246 of the

International Mail Manual to allow small packets to be included in ISAL

shipments to foreign countries where ISAL service is available.

ISAL is a bulk mailing service for international shipment of

publications, advertising mail, catalogs, directories, books, and other

printed matter. The service is available from designated acceptance

cities to approximately 125 countries. To use ISAL, a mailer must send

at least 50 pounds of printed matter at one time, sorted and sacked by

destination country. ISAL mail is transported by air to the destination

country. Once in the foreign country, the mail is entered into that

country's surface mail system for delivery. As a result, ISAL rates are

lower than those for regular airmail, while service is faster than

service for regular surface mail.

Many customers have requested permission to include small packets

in ISAL shipments. Frequently, these requests occur because the item

being mailed is classified as third-class domestically. Yet, because

the item contains something that is not classified internationally as

printed matter, the item may not be sent through ISAL. Moreover, since

there is no service comparable to ISAL for small packets, these

customers are forced to choose between regular airmail service and

regular surface mail service.

The Postal Service invited public comment on the interim rule by

November 26, 1993, and received one comment.

The commenter asserts that the rates for ISAL will not cover the

cost of carrying small packets and that dutiable small packets will

cost the Postal Service more than printed matter, which is generally

non-dutiable. The Postal Service disagrees. The Universal Postal

Convention classifies printed matter and small packets as AO (Autres

Objets) and considers them together for terminal dues purposes. In

addition, all ISAL mail must be sorted and sacked by destination

country when it is tendered, and the Postal Service processes ISAL

sacks intact. Consequently, the Postal Service's costs to process a

given weight of ISAL mail should be the same regardless of whether the

sack contains printed matter, small packets, or a combination of both.

The fact that a higher percentage of small packets may be dutiable does

not affect the Postal Service's costs to provide the service. All U.S.

origin mail entering another country is subject to customs examination

whether it is subject to duty or not. This cost is absorbed by the

country of destination and is not charged back to the Postal Service.

The commenter also asserts that there has been no independent

verification that the Postal Service's ISAL rates are adequate to cover

the cost of the service and that the Postal Service should submit its

international rates for oversight to a body such as the Postal Rate

Commission. The Postal Service disagrees. The Postal Service alone is

responsible for international mail services, and there is no legal

requirement that its determinations be subject to verification by any

other agency. The Postal Rate Commission, in particular, has no

jurisdiction over international rates or services, so any study

conducted by the Commission would have no legal significance.

The Postal Service has concluded that the proposed amendments, as

collected, would benefit users of United States mail. No persuasive

reason has been put forward why implementation should be deferred.

Accordingly, the Postal Service will not defer implementation of the

final rule.

The final text contains the correction of a citation which was

incorrect in the original regulations. In section 246.941 of the

International Mail Manual, the reference to section 244.5 for

publishers' periodicals is changed to section 244.4. This reference

refers to the makeup of individual pieces, not to sortation

requirements for publishers' periodicals.

List of Subjects in 39 CFR Part 20

Foreign relations, incorporation by reference, international postal

services.

The Postal Service adopts the following amendments to the

International Mail Manual, which is incorporated by reference in the

Code of Federal Regulations. See 39 CFR 20.1.

PART 20--[AMENDED]

1. The authority citation for 39 CFR part 20 continues to read as

follows:

Authority: 5 U.S.C. 552(a); 39 U.S.C. 401, 404, 407, 408.

2. Chapter 2 of the International Mail Manual is amended by

revising section 246 to read as follows:

CHAPTER 2--CONDITIONS FOR MAILING

* * * * *

246 International Surface Air Lift (ISAL) Service

246.1 Definition

International Surface Air Lift (ISAL) is a bulk mailing system that

provides fast, economical international delivery of publications,

advertising mail, catalogs, directories, books, other printed matters,

and small packets. The cost is lower than that of airmail, while the

service is much faster than ordinary surface mail. Customers take ISAL

shipments to designated U.S. acceptance cities, where the mail is flown

to the foreign destinations and entered into that country's surface

mail system for delivery.

246.2 Qualifying Mail and Minimum Quantities

Only printed matter as defined in 241 and small packets as defined

in 260 that meet all applicable mailing standards may be sent in this

service. There is a minimum volume requirement of 50 pounds per

shipment except for the direct shipment option, which requires a

minimum of 750 pounds to a single country destination. Mailers may

present sacks of pound-rate and piece-rate mail to meet minimum

quantity requirements. Small packets may not be enclosed in M-Bags and

do not qualify for the full service or gateway/direct shipment M-Bag

rates.

246.3 General

246.31 Availability. ISAL service is available to the foreign

countries listed in Exhibit 246.71, through designated U.S. acceptance

cities.

246.32 Designated Acceptance Cities. Exhibit 246.32 shows cities

designated to accept ISAL.

246.4 Special Services

Special services provided for in Chapter 3 are not available for

items sent by ISAL.

246.5 Customs Documentation

See 244.6 and 264.5 for the requirements for customs forms.

246.6 Permit or Customer Identification Number

Each mailer must have a 10-digit ISAL permit number or customer

identification number. The first five digits are the ZIP Code of the

post office where the permit or customer identification number is

issued. The second five digits are separated from the first five by a

hyphen and are either the customer's permit imprint number or a

sequential number issued by the post office of account. If the permit

imprint number has fewer than five digits, precede the permit number

with enough zeros to make a five-digit number. For example, a mailer

with a permit imprint number of 29 whose business location is in New

York City (10010) is assigned an ISAL permit number of 10010-00029.

This number must be used on Form 3650, Statement of Mailing-

International Surface Air Lift.

246.7 Postage

246.71 Rates

246.711 Items Weighing Over 2 Ounces. Postage is paid on a per-

pound basis by rate group. M-Bags are also paid on a per-pound basis by

rate group, even if they contain items weighing 2 ounces or less. Small

packets are ineligible for the M-Bag rates and may not be included in

M-Bags. Separate reduced rates are provided for mail transported by the

mailer to the gateway airport mail facilities at New York (JFK); San

Francisco, CA; and Miami, FL; or when direct shipment can be arranged

from one of the acceptance cities (see Exhibit 246.32).

------------------------------------------------------------------------

Full service Gateway/direct

------------------ shipment

Rate group -----------------

Regular M-Bag* Regular M-Bag*

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1................................... $2.90 $2.32 $2.60 $2.08

2................................... 3.25 2.60 2.95 2.36

3................................... 3.40 2.72 3.10 2.48

4................................... 4.20 3.36 3.90 3.12

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See Exhibit 246.71 for network countries and individual postage rates.

*Small packets may not be mailed at these rates.

246.712 Items Weighing 2 Ounces or Less. These items are subject

to a charge of 32 cents per piece to all countries where service is

available. Pieces sent in M-Bags are subject to the pound rates in

247.11. Small packets are ineligible for the M-Bag rates and may not be

included in M-Bags. Mailings presented at one of the three gateway

offices or under direct shipment arrangements receive a discount.

246.713 Direct Shipment. Mailers may be authorized direct shipment

rates from the designated acceptance cities listed in Exhibit 246.32

(except Miami, FL; San Francisco, CA; and AMF-JFK, NY) when the Postal

Service can arrange direct transportation to the destination country.

To qualify, mailers must present a minimum of 750 pounds to each

destination country. This 750-pound minimum may include piece-rate and

pound-rate mail. Mailers should contact the postmaster at the

designated acceptance city at least 14 days before the first desired

mailing date. Postmasters must contact the distribution network office

(DNO) to obtain a contract for transportation. If the DNO cannot

arrange direct transportation, the direct shipment rate does not apply.

The Postal Service may cancel direct shipment rates and service when

direct transportation is no longer available.

246.72 Payment Methods

246.721 Items Weighing 2 Ounces or Less. The following methods

apply for the payment of postage for items that weigh 2 ounces or less:

a. Permit Imprint. Mailers may use permit imprints only with

mailings that contain identical-weight pieces. Any of the permit

imprints for printed matter shown in Exhibit 152.3 are acceptable. The

imprint must not denote ``Presort Rate,'' ``Bulk Rate,'' or ``Nonprofit

Organization.'' The postage charges are computed on Form 3650,

Statement of Mailing-International Surface Air Lift, and deducted from

the advance deposit account.

b. Postage Meter. If the mailing consists of nonidentical-weight

pieces, postage for the mailing must be paid by postage meter stamp on

each piece.

c. Permit Imprints. Mailers may use permit imprint with non

identical pieces if authorized under the postage mailing systems in DMM

P710, P720, or P730.

d. Precanceled Stamps. Mailers authorized to use precanceled stamps

may use this payment method.

246.722 Items Weighing Over 2 Ounces. Postage must be paid by a

permit imprint subject to the standards in DMM P040. Any of the permit

imprints for printed matter shown in Exhibit 152.3 are acceptable. The

imprint must not denote ``Presort Rate,'' ``Bulk Rate,'' or ``Nonprofit

Organization.'' The postage charges are computed on Form 3650 and

deducted from the advance deposit account.

246.723 Direct Sacks (M-Bags). For direct sacks to one addressee,

Tag 158, M-Bag Addressee Tag, must be endorsed ``ISAL U.S. Postage

Paid'' or show the permit imprint in the space reserved for postage.

(If an M-Bag is presented with a mailing when all other postage is paid

by meter, the postage on the M-Bag may be paid by a meter strip

attached to the M-Bag tag.)

246.73 Form 3650. Form 3650 is required for all ISAL mailings.

246.8 Weight and Size Limits

Any item sent by ISAL must conform to the weight and size limits

for the types of printed matter described in 243 or for small packets

in 263.

246.9 Preparation

246.91 Addressing. See 122.

246.92 Marking. Items must be endorsed with the appropriate

markings as shown in 244.2 for printed matter and in 264.2 for small

packets. For publishers' periodicals (second-class publications), the

imprint authorized under 244.21d(2) or 244.21d(3) may be used in place

of the ``PRINTED MATTER-SECOND-CLASS'' endorsement.

246.93 Sealing. Printed matter and small packets sent by ISAL may

be sealed at the sender's option.

246.94 Makeup

246.941 Sortation. All items must meet the makeup requirements in

244.4 for printed matter and publishers' periodicals and 264 for small

packets. Items must be sorted to the destination country. Items

weighing 2 ounces or less may not be placed in sacks with items

weighing over 2 ounces unless mailings are made under special mailing

programs (see 247.213).

246.942 Residue. Mail addressed to different countries may not be

commingled. Consequently, no residual mail is allowed in an ISAL

dispatch.

246.943 Facing of Pieces and Packaging. All pieces must be faced

in the same direction and packaged in bundles that are securely tied or

rubber-banded across the length and width. Pieces that cannot be

bundled because of their physical characteristics must be placed loose

in the sack.

246.944 Sacking. Mail to each country must be sacked in disposable

gray plastic sacks and labeled to that particular country with Tag 155,

Surface Airlift Mail. The three classifications of printed matter, as

well as small packets, may be mixed in the same sack. The combined

weight of the contents and the sack may not exceed 66 pounds. Tag 155

must show the weight in kilograms. No minimum weight per sack applies.

246.945 Direct Sacks to One Addressee (M-Bags) for ISAL. M-Bags

may be sent in the ISAL service to all countries except Ethiopia.

Weight, makeup, sacking, and sorting requirements must conform to part

245. Tag 158 must show the complete address of the addressee and the

sender and be attached securely to the neck of each sack. M-Bags may

not contain small packets.

246.95 Mailer Notification. Mailers wanting to mail shipments that

weigh over 750 pounds but not eligible for direct shipment rates, must

notify the ISAL coordinator at the acceptance city at least 4 days

before the planned date of mailing. Specific country information and

weight per country must be provided. No prior notification is required

for mailers with 750 pounds or less.

Stanley F. Mires,

Chief Counsel, Legislative.

Exhibit 246.32, Designated ISAL Acceptance Cities

Akron, OH*

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*Provisional Cities.

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Albany, NY

Albuquerque, NM

Anchorage, AK

Atlanta, GA

Austin, TX

Baltimore, MD

Bellmawr, NJ*

Billings, MT

Birmingham, AL

Bismarck, ND

Boise, ID

Boston, MA

Buffalo, NY

Burlington, VT

Charleston, SC

Charlotte, NC

Chicago, IL

Cincinnati, OH

Cleveland, OH

Colorado Springs, CO*

Columbia, SC

Columbus, OH

Dallas/Ft. Worth, TX

Dayton, OH

Denver, CO

Des Moines, IA

Detroit, MI

Duluth, MN

El Paso, TX

Erie, PA*

Eugene, OR

Florence, SC

Grand Rapids, MI

Greensboro, NC

Greenville, SC

Harrisburg, PA

Hartford, CT

Honolulu, HI

Houston, TX

Huntsville, AL*

Indianapolis, IN

Jackson, MS

Jacksonville, FL

Jersey City, NJ

Kalamazoo, MI*

Kansas City, MO

Knoxville, TN*

Las Vegas, NV

Little Rock, AR

Long Beach, CA*

Los Angeles, CA

Louisville, KY

Memphis, TN

Miami, FL

Midland, TX

Milwaukee, WI

Minneapolis/St. Paul, MN

Mount Vernon, NY*

Myrtle Beach, SC

Nashville, TN

New Haven, CT*

New Orleans, LA

New York, NY

Norfolk, VA

Oklahoma City, OK

Omaha, NE

Orlando, FL

Pittsburgh, PA

Philadelphia, PA

Providence, RI

Phoenix, AZ

Portland, OR

Raleigh, NC

Richmond, VA

Rochester, NY

Sacramento, CA

St. Louis, MO

Salt Lake City, UT

San Antonio, TX

San Diego, CA

San Francisco, CA

San Juan, PR

Santa Ana, CA*

Seattle, WA

Sioux Falls, SD

Spokane, WA*

Syracuse, NY

Tampa, FL

Toledo, OH*

Tucson, AZ

Tulsa, OK

Washington, DC

Wichita, KS

[FR Doc. 94-11685 Filed 5-12-94; 8:45 am]

BILLING CODE 7710-12-M